Commodity Market Report, 27th of March 2019

Agriculture Commodities fell on Tuesday after the gains which have been generated in previous sessions to close today’s trading session in the red territories.

Regarding weather news, the weather is mixed today, where Iowa is expected to receive some rains while midway weather turned to be drier for next week.

Oil prices rose on Monday to end the session in the green boosted by inventories cuts. However the fears over the impact of global economic have pressured the prices on Tuesday.

U.S. Crude oil rose on Monday to close higher at $60.02 per barrel while it fell on today’s session to trade lower at $59.44 a barrel.

Brent oil advanced on Monday to end the session up at 68.01 a barrel while it lost on today’s session to trade down at $67.76 a barrel.

Wheat Intraday : up trend

CBOT Wheat May Futures ended Tuesday’s session in the red at $4.69-1/4 per bushel, and it remained flat on Tuesday to trade down at $4.69-1/4 a bushel at 10:20 GMT.

According to Reuters, Egypt filled its latest tender for 4.4 million bushels of Gulf SRW, but any boost from the deal didn’t last long. May SRW broke to new session lows after the Egypt deal hit the wires, suggesting the only way the U.S. is competitive is by low-balling prices. Nominal offers from Egypt’s other suppliers looked cheaper once freight is factored in.

Egypt’s move to extend payment up to 180 days may have also been a factor.

  • Our recommendation: sell below 469.25, Take Profit 466.75 then 464 Stop Loss 469.25
  • Other side: buy over 469.25, Take Profit 472 then 474.5 Stop Loss 469.25
  • Comment: RSI below 48
Resistance R1
support S1

Pivot Point: 469.25

Corn Intraday : sideways

CBOT Corn May futures ended Tuesday’s session in the red at $3.77 a bushel, and it continued its losses to trade down at $3.75 a bushel on today’s session at 10:30 GMT.

Trade estimates compiled by wire services show the average guess only a little higher than the 90.9 million acres we reported last week from results out of the latest survey. However, history shows a 50-50 chance of lower acreage from March intentions, a factor in play this year due to wet conditions and low prices.

  • Our recommendation: sell below 374.08, Take Profit 371.41 then 369.08 Stop Loss 374.08
  • Other side: buy over 374.08, Take Profit 376.41 then 379.08 Stop Loss 374.08
  • Comment: RSI below 40
Resistance R1
support S1

Pivot Point: 374.08

Soybean Intraday : sideways

CBOT Soybean May ended Tuesday’s session in the red at $9.00-3/4 a bushel, and it's lost on today’s session to trade lower at $8.89 a bushel at 10:30 GMT.

Estimates collected by wire services show an average slightly higher than the 85.9 million acres we found in our survey. However, there’s also a 70% chance historically that farmers will plant more acres, especially if the soybean to corn ratio rises and corn planting goes slowly.

  • Our recommendation: sell below 891.25, Take Profit 882 then 876.25 Stop Loss 893.25
  • Other side: buy over 891.25, Take Profit 897 then 906.25 Stop Loss 889.25
  • Comment: RSI over sold
Resistance R1
support S1

Pivot Point: 891.25

The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.